Institutional developments in the Dutch waste-collection market
We analyse the Dutch waste-collection market for 1998 – 2005. We show that municipalities with unit-based pricing (UBP) or waste collection by private companies have lower costs. However, this cost advantage decreases over time as competition decreases, because of the introduction of the VAT-compensation fund, and because of contamination of waste streams. The cost advantage of private provision is shown to be much larger in the first years, while a longer duration of private production results in lower efficiency. An important conclusion from this study is that UBP, although its effectiveness deteriorates over time, is more effective in reducing cost than is contracting out. Moreover, we show that the effect of contracting out might have been overestimated in the previous literature because there is a correlation between the use of contracting out and UBP. Low incentive UBP systems, based on volume or frequency, are only effective when the municipality does not collect the waste itself.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ivaldi, Marc, et al, 1996. "Comparing Fourier and Translog Specifications of Multiproduct Technology: Evidence from an Incomplete Panel of French Farmers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 649-67, Nov.-Dec..
- Creel, Michael & Farell, Montserrat, 2001. "Economies of scale in the US airline industry after deregulation: a Fourier series approximation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(5), pages 321-336, November.
- Linderhof, Vincent & Kooreman, Peter & Allers, Maarten & Wiersma, Doede, 2001. "Weight-based pricing in the collection of household waste: the Oostzaan case," Resource and Energy Economics, Elsevier, vol. 23(4), pages 359-371, October.
- AndréS GóMez-Lobo & Stefan Szymanski, 2001. "A Law of Large Numbers: Bidding and Compulsory Competitive Tendering for Refuse Collection Contracts," Review of Industrial Organization, Springer, vol. 18(1), pages 105-113, February.
- E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, vol. 28(3), pages 553-570, July.
- Henry Ohlsson, 2003.
"Ownership and Production Costs: Choosing between Public Production and Contracting-Out in the Case of Swedish Refuse Collection,"
Institute for Fiscal Studies, vol. 24(4), pages 451-476, December.
- Ohlsson, H., 1998. "Ownership and Production Costs Choosing Between Public Production and Contracting Out," Papers 1998-6, Uppsala - Working Paper Series.
- Ohlsson, Henry, 1998. "Ownership and Production Costs - Choosing Between Public Production and Contracting Out," Working Paper Series 1998:6, Uppsala University, Department of Economics.
- Eoin Reeves & Michael Barrow, 2000. "The Impact of Contracting Out on the Costs of Refuse Collection Services - The Case of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 129-150.
- Dijkgraaf, E. & Gradus, R. H. J. M., 2004.
"Cost savings in unit-based pricing of household waste: The case of The Netherlands,"
Resource and Energy Economics,
Elsevier, vol. 26(4), pages 353-371, December.
- Elbert Dijkgraaf & Raymond Gradus, 2004. "Cost savings of unit-based pricing of household waste: The case of the Netherlands," Public Economics 0409001, EconWPA.
- Humphrey, David B. & Vale, Bent, 2004. "Scale economies, bank mergers, and electronic payments: A spline function approach," Journal of Banking & Finance, Elsevier, vol. 28(7), pages 1671-1696, July.
- Domberger, S & Meadowcroft, S & Thompson, D J, 1986. "Competitive tendering and efficiency: the case of refuse collection," Fiscal Studies, Institute for Fiscal Studies, vol. 7(4), pages 69-87, November.
- E. Dijkgraaf & R. Gradus, 2003.
"Cost Savings of Contracting Out Refuse Collection,"
Springer, vol. 30(2), pages 149-161, June.
- Don Fullerton & Thomas C. Kinnaman, 1994.
"Household Responses for Pricing Garbage by the Bag,"
NBER Working Papers
4670, National Bureau of Economic Research, Inc.
- Mildred Warner & Robert Hebdon, 2001. "Local Government Restructuring: Privatization and Its Alternatives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 315-336.
- Stefan Szymanski, 1996. "The impact of compulsory competitive tendering on refuse collection services," Fiscal Studies, Institute for Fiscal Studies, vol. 17(3), pages 1-19, August.
- repec:inr:wpaper:153156 is not listed on IDEAS
- E. Dijkgraaf & R. H. J. M. Gradus, 2007. "Fair competition in the refuse collection market?," Applied Economics Letters, Taylor & Francis Journals, vol. 14(10), pages 701-704.
- Germa Manel Bel Queralt & Antonio Miralles, 2002. "Factors influencing privatization of urban solid waste collection: some evidence from Spain," Working Papers in Economics 74, Universitat de Barcelona. Espai de Recerca en Economia.
- Mitchell, Karlyn & Onvural, Nur M, 1996. "Economies of Scale and Scope at Large Commercial Banks: Evidence from the Fourier Flexible Functional Form," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(2), pages 178-99, May.
- Gallant, A. Ronald, 1982. "Unbiased determination of production technologies," Journal of Econometrics, Elsevier, vol. 20(2), pages 285-323, November.
When requesting a correction, please mention this item's handle: RePEc:pio:envirc:v:26:y:2008:i:1:p:110-126. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.